Production tax credit is an essential incentive for Portland-area growth

With the recent opening of the new Vestas North American headquarters and the decision earlier this year by Iberdrola Renewables to keep its headquarters in the Pearl District, Portland is, indisputably, the wind energy capital of the United States. Together, the two companies directly employ about 750 people in Portland and indirectly generate many more jobs.

That's why when we look at the production tax credit debate -- now mired in pre-election politics in Washington, D.C. -- we think of it as a jobs issue that has a tremendous impact in Oregon. We hope that Congress will find a way to deal with it soon, because its outcome will affect how much we can grow these great wind-energy jobs in Portland and in communities across Oregon that have become home to wind-generation projects.

Although it has been labeled so, the PTC is not a subsidy but rather a business tax incentive for successful renewable-energy projects that helps keep electricity rates low and encourages development of proven clean energy. Oregon's economy has benefited greatly from wind energy development, and the PTC has been, and continues to be, a necessary tool for wind development in our state.

The PTC has strong bipartisan support and has been extended on numerous occasions in the past. However, with this tax credit set to expire at the end of this year, passage of the PTC and other business tax credits is being held up in part because of election-year politics, which is trumping our economic and energy needs.

The PTC is smart, effective policy that has helped drive billions in private-sector investment and is an economic multiplier and solid job creator for Oregon. Businesses need predictability to operate, and renewable energy companies are no different. With the threat of the PTC expiration, wind project developers are hesitant to plan U.S. projects, and American manufacturers have seen a marked decrease in orders. There has already been a jobs impact in the Portland region and across the country. In previous years when the PTC expired, wind installations dropped between 73 and 93 percent, resulting in significant job losses.

The Portland Business Alliance has long recognized the value that sustainable practices and renewable energy can bring to our state. Oregon will continue to attract companies that are interested in building a sustainable energy future for our country, and the Portland Business Alliance will continue to support policies that create jobs and enhance the renewable energy sector.

If we keep the PTC in place, many more jobs will be created as wind energy expands. Without it, Oregon jobs and energy development will suffer. The time to act is now. Congress needs to move quickly to enact legislation that will extend the production tax credit.

Sandra McDonough is president and CEO of the Portland Business Alliance.